Support in the physical market below $1,640 but this is not strong enough

Gold remains within its $1,640 to $1,660 trading range of the past few days.

There is good buying support in the physical market below $1,640 but this is not strong enough, or buyers are not keen enough to chase the metal higher. Indian demand remains lacklustre with the local market still digesting how best to cope with the hike in taxes. However, indications are that the Indian market is likely to look for opportunities on dips lower in the gold price in anticipation of festival demand in late April.

Gold support is at $1,644 and $1,640. Resistance is $1,662 and $1,674.